Accounting for the Rupee

Posted by: Deepa Vasudevan on Wed, May 23rd, 2012

The recent depreciation of the rupee against the dollar is attributed to India’s widening current account deficit and reduced capital inflows. It is critical to implement policies that reduce the twin deficits. That will boost investor confidence and bring in capital inflows. Read more

Nurturing Financial Advisors - Part 3 - Don't oversimplify "Investors can and will pay for advice"

Posted by: Uma Shashikant on Sat, May 5th, 2012

The onus of recommending the right product should be on the advisor who should earn the trail commission, while the agent earns a small token commission for his limited role.  As an extension of this principle, the exit load currently charged to the investor can also be collected from the advisor.  Read more

Nurturing Financial Advisors - Part 2 - Why Variable Asset-based Fee is Needed

Posted by: Uma Shashikant on Fri, May 4th, 2012

Reputational capital in advisory business can be built only when assets under advice are evaluated by investors for performance.  This can be fostered only if advisors are able to earn a variable fee for their services. Such variable fees currently go to the distributor. Read more

Nurturing Financial Advisors - Part 1 - Defining their Role and Revenue Model

Posted by: Uma Shashikant on Thu, May 3rd, 2012

A financial advisor  provides strategic and tactical advice to a household to manage its balance sheet efficiently. This function cannot be oversimplified to mean distribution of financial products, financial planning or risk profiling. The distinction between the advisor and the distributing agent is critical to avoid malpractices in the mutual fund distribution space.  Read more